New Issue: Morgan Stanley prices $6 million leveraged CMS curve, S&P 500-linked notes

By Angela McDaniels

Tacoma, Wash., March 29 - Morgan Stanley priced $6 million of leveraged CMS curve and S&P 500 index-linked notes due March 30, 2027, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is 12% for the first year. Beginning March 30, 2013, it will be five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 12% per year, multiplied by the proportion of days on which the index closes at or above 935. Interest is payable quarterly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Leveraged CMS curve and S&P 500 index-linked notes
Amount:	$6 million
Maturity:	March 30, 2027
Coupon:	12% for first year; beginning March 30, 2013, five times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 12%, multiplied by proportion of days on which index closes at or above 935; payable quarterly
Price:	Par
Payout at maturity:	Par
Pricing date:	March 27
Settlement date:	March 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61760QAQ7

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